Commercial auto insurance is a coverage for your trucks, cars, and vans that you use to run your business. Have you ever had a question about your commercial auto insurance or have been thinking of purchasing this coverage? If so, today we are going to answer the most commonly asked questions with respects to this very particular and popular commercial auto insurance.
Q1. Do I need Commercial Auto Insurance?
A1. In all states except for New Hampshire, auto insurance is required by law to have on a vehicle. This goes for commercial vehicles too. If you own a business, but conduct business with your own auto, you are a great candidate for commercial auto insurance. Plus, if your personal auto insurance carrier finds out you are using that car for business purposes, they could cancel your insurance policy.
Q2. Is there a difference between Personal Auto and Commercial Auto Coverage?
A2. Personal and Commercial Auto Insurance are NOT the same, and they’re underwritten differently as well. Personal Auto Insurance is required by law in most states and it’s for individuals and families alike. This type of coverage can be tailored to the exact needs of a driver.
Commercial Auto Insurance on the other hand is for businesses and is under a business’ name, not an individual’s name. This type of coverage is tailored to explain which drivers are covered and which drivers are not when they drive the business’ vehicles. This coverage can be altered to allow all employees to drive the business’ vehicles, or to allow only certain employees the ability to be covered while driving the business’ vehicles.
If a driver who was NOT on the policy as a covered driver and is the at-fault driver in an accident, both the company and employee could be sued if the damages and injuries are significant enough.
Q3. Doesn’t my Business Owner’s Policy (BOP) have auto coverage built into it?
A3. Commercial Auto Insurance is NOT a part of a BOP policy, but it can be added separately for a fee. It will then be considered a second business policy.
Q4. How can Commercial Auto Insurance cover my business?
A4. Commercial Auto Insurance is designed to protect many auto risks that are associated with a business. Some of the big name coverages are as follows:
Covers damage to a vehicle regardless of who is at fault in an auto accident.
Protects a vehicle against damages that didn’t arise from a collision such as, broken glass, fire, theft, etc.
Covers accidental property damage you or someone driving your vehicle causes to another person.
Pays medical expenses of the other driver or passengers traveling in both vehicles regardless of which party was the at-fault driver.
Covers bodily injuries you sustain in an accident by a negligent driver who doesn’t have any Auto, Personal or Commercial Insurance policy.
Covers accidental bodily injuries caused to another person by you. Commercial Auto Insurance has built in coverage for legal representation to defend you in court in the event you are ever sued as a result of an auto accident.